Rockaway's Playland Motel is now renting rooms to homeless families.
A spokeswoman with the Department of Homeless Services confirms the 12 room motel is being used to help meet the department's"legal and moral obligation to shelter homeless families with children."
She says there are no plans to convert the location to a shelter.
NY1 spoke with Steven Banks, Commissioner of the New York City Human Resources Administration and the Department of Social Services.
He says New York City homelessness has increased 115 percent between 1994 and 2014.
"For about four decades the City of New York has periodically rented commercial hotel rooms in order to make sure people have a roof over their heads this is another place in which rooms are being rented to have people be inside and not left on the streets," said Banks.
In a statement Councilman Eric Ulrich said, "Instead of fulfilling his pledge to end the use of hotels to shelter people who have fallen on hard times, Mayor de Blasio quietly signed a deal to use Playland Motel in Rockaway Beach as a homeless facility. I am outraged. My constituents - and all New Yorkers - deserve better.Mayor de Blasio's so-called progressive agenda has caused the homeless population to skyrocket. The time has come for this administration to put forth real and meaningful solutions that will actually help people find permanent housing and rebuild their lives. The Playland Motel is not the right answer."
He co-hosted a community meeting Sunday night to discuss the situation.
NY1 reached out to the Playland Motel for comment about the situation and are waiting to hear back.